Many people ask how I allocate my funds, today I will share it, for reference only:
1. Core Position - Bitcoin
Suggested to account for 50%-80% of total funds.
Reason: BTC's volatility is relatively stable, and its capital security is higher; it is the weather vane for the entire market.
2. Collaborative Position - Mainstream Altcoins
Suggested to account for 20%-30%.
Includes ETH, BNB, SOL, SUI and other top ten market cap coins, following BTC's direction, with relatively larger increases and decreases.
3. Opportunity Position - Small Market Cap Altcoins
Suggested to account for 10%-20%.
Small funds, large volatility, can easily see short-term movements of about 3 times, like ENA and ONDO, but also most prone to oscillating declines.
Another part of the funds under 5% should be treated as 'lottery position', strictly control the ratio. Speculate for short-term doubling, like CFX and REI that were allocated earlier.
4. Adjusting Mindset
- Early Bull Market: BTC proportion 50%, mainstream altcoins can be 40%, steadily following the trend, or even outperforming.
- Late Bull Market: Gradually reduce the altcoin proportion and increase the BTC proportion, as many altcoins begin to stagnate and shrink, only suitable for medium and short-term trades, while BTC serves as a stabilizing force.
- Bear Market: Only retain BTC, liquidate small altcoin positions.
5. Position Discipline
- BTC is defensive and must be held long-term.
- Only trade altcoins in segments, do not hold them long-term. - Keep 10% liquid funds to respond to sudden opportunities.
